Tim Tarrant and Jim Edmonds share partnership profit on a 3:2 basis. They have capital balances of $ 170,000 and $ 90,000, respectively, when J.T. Ryder is admitted to the partnership.
Instructions
Prepare the journal entry to record the admission of Ryder under each of the following independent assumptions:
a) Ryder invests $ 100,000 for a 25% ownership interest.
b) Ryder invests $ 40,000 for a 25% ownership interest.
c) Ryder invests an amount that gives him a 20% ownership interest.

Question

Quizplus · Accepted Answer

The Answer of Tim Tarrant and Jim Edmonds share partnership profit on a 3:2 basis. They have capital balances of $ 170,000 and $ 90,000, respectively, when J.T. Ryder is admitted to the partnership.
Instructions
Prepare the journal entry to record the admission of Ryder under each of the following independent assumptions:
a) Ryder invests $ 100,000 for a 25% ownership interest.
b) Ryder invests $ 40,000 for a 25% ownership interest.
c) Ryder invests an amount that gives him a 20% ownership interest.

Tim Tarrant and Jim Edmonds Share Partnership Profit on a 3:2